Refer to the information provided in Figure 6.1 below to answer the question(s) that follow. Figure 6.1
-Refer to Figure 6.1. Assume Tom is on budget constraint AC and the price of a hot dog is $5.00. Tom's monthly income is
A) $40.
B) $100.
C) $200.
D) $400.

Question

Refer to the information provided in Figure 6.1 below to answer the question(s) that follow.  Figure 6.1
-Refer to Figure 6.1. Assume Tom is on budget constraint AC and the price of a hot dog is $5.00. Tom's monthly income is
A) $40. 
B) $100. 
C) $200. 
D) $400.

Quizplus · Accepted Answer

If Tom is on budget constraint AC and the price of a hot dog is $5.00, the total income can be calculated by multiplying the maximum quantity of hot dogs he can buy (40) by the price per hot dog ($5.00), which equals $200.

Refer to the Information Provided in Figure 6